Commentary: The bullish scenario that we have been focusing on is playng out. We wrote yesterday that “a second wave is currently unfolding that could draw price back to the 61.8% of 1.9676-1.9898 at 1.9761. This would allow us to align with the bull trend.” The 2nd wave dropped to 1.9735 this morning.
Our working assumption is that wave 3 (higher) is underway. A rally through former support at 1.9790 would confirm the bullish count. 1.9676 must hold in order for us to be proved correct. A drop under 1.9676 has bearish implications that we?ll address if price action dictates. Strategy: Bullish if 1.9791 trades before 1.9676, against 1.9676 (we?ll publish targets if price action confirms our bias)